New York • Target has lowered its second-quarter forecast citing the promotional discounts it had to use to attract shoppers.
The Minneapolis-based retailer also said Tuesday it expects gross expenses tied to a massive data breach this past winter to come to $148 million in the period, which will be offset by $38 million in insurance. It also paid $1 billion to retire $725 million in debt.
Target Corp. has been reeling since it announced in December that hackers stole millions of customers' credit- and debit-card records. The theft hurt the chain's reputation and profits and spawned dozens of legal actions. Target is facing troubles on a number of other fronts as well, including the perceptions that its prices are higher than those at Wal-Mart Stores Inc.